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Updated over 3 years ago,
To sell or not to sell rental in surging market
Wow, the market in Houston, TX is crazy! I have a house I completely renovated as a BRRRR in 2018. ARV was 130K, and I was able to refinance and take out close to 15K more than what I had in it. Pretty successful deal. I have had the same tenants in it, and they always pay $1500 on the first. I currently owe about 95K on the mortgage, and the new value is around 180K. Should I continue to receive the cash flow, or sell it from under the renters and get about 65-70K out after fees and taxes? My family has about 50K in revolving debt, and this would get us debt free. I just don't feel right selling it knowing it would be hard for them to find something else for their family (I know its a business). Thoughts? Any other creative solutions? Raise rents? Refinance? I have started to move to commercial real estate in my portfolio and this may give an opportunity to focus on that apartment complex I want?